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The user premium for onshore wind will remain unchanged at JPY 22/kWh.

Since the committee tasked with calculating procurement costs also lowered the premiums for solar to JPY 32/kWh, from JPY 36/kWh, this latest move is seen as helping create a more level playing field for wind power.

"So far, it has been a bit of a chicken and egg-type problem, with developers unwilling to make the first move in the absence of an energy policy," he added.

The price burden associated with offshore wind has seen developers press for offshore tariffs around 1.5 times higher than those for onshore wind. The JPY 36 figure is at the upper end of expectations.